From Bulls to Bears
A month ago, the market for Ethereum (ETH) seemed to be dominated by the bulls. Technical indicators were giving positive signals and price was well above support. But given the volatility that’s inherent in the market for cryptocurrencies, the bulls seem to have retracted for now. After breaking the earlier support level of $678 (as noted in our earlier article) on May 22nd, Ethereum’s price has been sliding further down and is now nearing a key support level of $370. On June 12th, it plunged below its immediate support level of $500 and is now reeling towards a key support which can be cited at the $370 price level. Ethereum (ETH) is now (as of June 13th, 9:15 AM UTC), trading at its two-month low.
Bearish Crossover Coupled With Weak Market Momentum
Now, a good part of May delved in positive sentiments for Ethereum (ETH) post the April 22nd bullish crossover. The 14-day moving average line (in pink above) crossed the 50-day moving average line (in purple above) from below. However, the onset of June turned the table. On May 28th, the MA-14 line crossed the MA-50 line for ETH from above forming a bearish crossover. Market sentiment has continued to remain bearish since then.
The market for Ethereum (ETH) seems damp overall with limited momentum. The relative strength index (a measure of market momentum) is at about 30 index points, indicating weak momentum in price movement.
Riding Market Volatility
The June 10th Coinrail hack incident has been quite instrumental in adding volatility to the market for cryptocurrencies, washing off $28 billion in a day (from June 10th to June 11th). Bitcoin (BTC) saw a 10% plunge, while Ethereum dived 15% (from over $600 to under $510), thereby adding to ETH investor’s losses. For now, the market is heading south, recording lower lows each day. Overall, Ethereum’s price trajectory is currently riding on market volatility. A key turning point for this price coaster can be spotted as the $370 price level. So, investors who believe in the good times ahead philosophy for Ethereum (ETH) must watch the $370 price level. Who knows: it may mark the end of the sale season!
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